Home to 80% of EU citizens and 70% of greenhouse gas emissions, urban areas play a key role in fighting climate change; but cities' access to funding for green policies is proving a major stumbling block.

In September 2007, the Commission presented the outlines of a new 'urban strategy', which lays out a large range of potential solutions and areas where the EU could take action in order to tackle the growing congestion, pollution and safety problems in Europe's cities.

In 2001, the Commission presented a White Paper proposing 60 measures to overhaul the EU’s transport policy in order to make it more sustainable and avoid huge economic losses due to congestion, pollution and accidents. A 2006 mid-term update attempts to re-balance the policy towards economic objectives.